(This is
the Heartlands outline proposal we submitted for Chinese investor
review.)

Our
Chinese contact point was through Evergreen Pulp Inc., owned by Lee &
Mann, one of China's leading cardboard container manufacturers.
Evergreeen Pulp's CEO David Tsang and V-P Sam Wong were advising us.
Local Chinese trade expert Fred Chien also gave us advice. We threw in
everything but the kitchen sink in terms of investment opportunities
for Chinese investors. But in doing so, I think we give inspiration
for what can happen if people are willing to cooperate instead of
ruthlessly compete, and I'm not just talking about economic
competition but political competition as well.

Cell
phone-Satellite-Processing Center(s) system based on Tribal
Trust land.
Uses state-of-the-art "smart phone" cell phone technology to bring
Lottery daily updated Lottery prize information to each cell phone
view-screen plus has slot for credit card activation to "point and
click" retail purchase items.
Whole system requires no ticket outlets and does away with all the
ticket outlet supporting systems making this new vastly simpler Cell
phone-Satellite-Tribal Land Processing Center System much less
expensive to set up and maintain.

2. Heartlands "Lotto-Card" Credit Card Lottery

Operates
in conjunction with Heartlands Credit Card operation
Every time a purchase is made using the Heartlands Lotto-Card,
Heartlands cardholders are automatically entered into the Heartlands
Credit Card Lottery.

Good
Cause lottery gives corporations good PR plus excellent lottery odds
as far fewer corporate players are involved.
Lack of numbers (40,000 corporations worldwide) is offset by high
ticket price to create mega jackpots.
Most corporations have a certain small percentage of profits set aside
for charity contributions.
This would give corporations the same Good Cause PR benefits plus
giving the lucky corporations big bonus return.Heartlands Trust Co. Credit Card
Operations

Only
Credit Card in the world to offer automatic cardholder entry into
ongoing Heartlands Credit Card Lottery & the Heartlands International
Lottery.Heartland Nation-to-Nation
Banking Operations

Using
Tribal Trust land and Tribal Sovereignty rights to create a
Duty-Freeport at the south end of Indian Island (the Samoa Bridge
divides the island into cultural heritage restoration on the north end
and commercial enterprise development on the south end).
Tariff-free, Duty-Free import/export of raw goods, cars and
electronics, currency exchange, gold, silver, precious items
import/export Heartlands Research &
Development

Think
Tank, New Product R&D, general problem-solving for both Heartlands
Trust Co., local Tribes, and Palco Community Corporation businesses.
Think Tank for universal community problem solving working in
cooperation with Chinese to develop truly sustainable economies that
do not gobble up the world's limited resources as well as working to
offset global warming and global environmental pollution.Heartlands Marketing

Each of
the various components of both the Heartlands Trust Company divisions
and the United Palco Inc. divisions will need professional business
plans in order for investors to risk investment. Heartlands marketing
division will coordinate this task for both businesses.
Heartlands Marketing will be the lead division for the Heartlands
Trust Co. project as basic marketing planning is needed to initiate
the project.Heartlands Tribal Enterprise
Development

Holistic
Medicine approach
A key element in the Palco Community Corporation & Palco Plan*
In partnership with Indian Health ServicesHeartlands Cultural Renaissance
Center

Oversees
Native American Cultural activities at the Heartlands Cultural
Renaissance Center to be located within the Bear River ancestral land
acquisition from Scotia Pacific (Palco)

Palco Community
Corporation

in partnership with Heartlands Trust Company

Heartlands Trust Co. held to begin with, then going to full Employee
Owned as soon as basic corporate infrastructure is in place and
employees become confident of successful ownership and management.
Palco Community Corporation divisions are either independent
affiliates or divisions of parent company. All affiliates funnel
certain percentages into the main Palco Community Corporation trust
account for cutting operational costs of each component as well as
strengthening their overall financial leverage power.Pacific Lumber Company

Community
Self-Sufficiency Kits for setting up basic community service
facilities for 3rd World nations and/or Disaster Area Relief efforts.
Palco Cottage Kits, Palco Cabin Kits, commercial building kits, all
kinds of community service building kits, school kits, medical clinic
kits, etc.
Palco Redwood Miniature Victorian house Kits
Palco Interior home Kits--kitchen kits, bathroom kits, bedroom kits,
etc.
"Down-Home" Kits: insulated Tents made like thin sleeping bags sewn
together to form tent walls. Could have made a difference in saving
lives in the Central Asia earthquake disaster.

It would
be convenient to have Maxxam's 60% share of Kaiser Aluminum in order
to accomplish the above wedding of aluminum with wood to create a new
dimension in house kits and furniture.Custom Cardboard Company: In
partnership with Evergreen/Lee & Man

Egg-crate
design cardboard insulation modules made to fit existing building
frameworks, e.g., 16" centered wall studs, etc. Treated cardboard to
provide the same or better R-insulation values than fiberglass
insulation at much cheaper prices plus being easier and safer to use.

Fortuna
site for a Palco Big Box-Winco Type all-in-one Mall. Using Tribal
sovereignty and Chinese capital to successfully compete with
volume-discount stores like Walmart. This concept should follow the
Dollar Store and Winco store models success stories.Palco Industrial Park

Using
Palco&;s currently idle Carlotta site for an Industrial Park with
Heartlands Trust Co. new business incubator funding.
Start-up help plus promotion of local finished wood product
businesses.Palco Ark Parks

Under the
new Palco Community Corporation timber management plan environmental
protection of the life of the land takes advantage of the Heartlands
Lottery&;s profitability to save old growth trees and set aside
critical endangered species habitat for eco-system restoration. Palco
Ark Parks will be areas set aside specifically as endangered species
recovery zones where various indigenous endangered species are
protected and helped along in their species recovery with our species
help. Palco Ark Parks envisions the development of a learning school
for those endangered species that have a hard time adjusting to human
society and vice versa, e.g., bears and wolves, once native to the
area. There are people who have the ability to communicate with wild
animals like horse whisperers do and since Palco Owns such extensive
forest lands hosting many wild species it seems an appropriate part of
Palco's overall sustainable forestry operation. The Palco Plan

The Palco
Plan will be a very comprehensive health and retirement benefits
program that will exceed prior Murphy family PL benefits or any other
local business work benefits packages. Palcovilles

By
following the traditional Company Town example of Scotia, we will
create "Palcovilles" for all employees where home ownership will be
part of the employee pay package. Retirement benefits costs will be
reduced through cooperative living and healthcare programs in
conjunction with the Heartlands Medical Center. Everybody, doctors and
other high pay workers will trade off high salaries for higher quality
worker and retirement community living, thus keeping the system less
expensive for local employees and their families than any existing US
healthcare system. Palco Farms and Pharmaceuticals

Key
elements for reducing living costs for all Palco employees. Healthy
food and inexpensively produced vital drugs as part of the Palco Plan.
Utilizes non-forested Palco lands and/or leased bottomlands currently
underutilized for farming potential.The Scotia Inn

I worked
as a night auditor for the Benbow Inn for seven years. At one time I
seriously considered applying for general manager position there. With
a Scotia Studios next door and no more Palco negative timber
harvesting publicity, with all the things to see in Humboldt County,
the Scotia Inn can again become a real working hotel with a glorious
history and promising future.Pal-Arts

Scotia Studios-Heartlands FilmsUtilizing the Mill A buildings for Studio Sound Stages and
the strong interest in film-making in Humboldt County. (We have a
Humboldt County Film Commission). I studied filmmaking in college and
actually made a short experimental animation film that showed twice at
the Cinema Theatre in Hollywood as part of an experimental film
series. I have a great abiding interest in films and this is where I
want to do most of my creative work for the Palco Community
Corporation. While working for Pacific Lumber Co. in 1991, I attempted
to enlist PL and EPIC's joint cooperation on a watershed and stream
restoration documentary film. EPIC expressed no interest and PL didn't
want to do it otherwise.
While working with the Bear River tribe my Heartlands partner Sparky
and I found a Hollywood producer and film company interested in doing
a film about the Indian Island Massacre. (See Qualawaloo below).

"Qualawaloo"
or "The Indian Island Story"- film about the Indian Island massacre
period and how it affected local Native Americans using Sparky's life
story as the modern Indian man facing a white-man's world when his
tribal culture has been all but destroyed. Sparky is one of the most
pure blood Native Americans around and he is a direct descendent of
Indian Island survivors. We have a script for this film as it was a
story that one of the producers for Ted Turner's Native American
series, Eileen Kahn and her then current employer, Cabin Fever
Entertainment (famous for TV comedy series Northern Exposure), wanted
make into a movie. About two months into the project Cabin Fever
pulled out support saying they decided against doing any more ethnic
films. Jack Hanrahan, who teaches a screenwriting class at HSU, was
our project advisor.

"The 5th
World"- an epic Sci-Fi film set in the not-so-distant future where the
Native American version of Utopia has come about and what America
(United Nations of America) and world society looks like in that
Native American vision of our future.

"Word"-
Sci-Fi thriller with a plot that revolves around a new software
program called "Word" that reads millions of texts where it is
discovered that the future can be predicted using fluidics analogy
word flow charting. Words are counted from past records, periodicals
and fiction to show patterns emerging predicting future social
responses, e.g. when the word "war" becomes more and more frequently
in the press and novels until war actually breaks out. Once the
program is known to work, every major government on earth wants it so
the plot has protagonists fleeing for their lives from gov't secret
services, crime syndicates and other assorted madmen greedy for power
to predict and control the future.

"Yeishu
ben Pantera"- based on the Jewish Talmud's negative story of the man
we call "Jesus Christ". This movie would be next to impossible to make
in Hollywood as it will be even more controversial than Mel Gibson's
"Passion" and certain to offend Jewish interests controlling that film
capital. Few beyond a small circle of scholars know about the Talmudic
accounts of Yeishu ben Pantera yet his story formed the basis for the
New Testament gospels of Jesus Christ. Yeishu is someone every
Christian should know about but most have no idea a historical Jesus,
different yet the same, made his mark on ancient Jewish religious
history long before the Gospels were written.

"The
Story of Paxcalibur"- true life vision quest story with a real magic
sword that has proven itself by working wonders both here in Humboldt
County and in Israel where it became honored in 2003 by over 500
Palestinian Christians in the courtyard of the Crusader built Basilica
of the Enunciation in Nazareth, the site where the angel Gabriel was
said to have told Mary of the coming birth of Jesus.

"The
Chronicles of Thomas Covenant" - Sparky's favorite sci-fi series that
would make an excellent movies series.

Palco Toys
Specializing in low tech educational toys

I worked
on forming a toy company for nearly a year as I have invented and
designed over 20 toy concepts starting when I was 16 and invented
"Water Totters" or "Sea-Saws", plastic foam or inflatable soft teeter
totters for kids to use in the ocean, lakes, or swimming pools. It was
among my first toy ideas. The creator and owner of DoodleTop, a new
toy company success story in Monterey about a decade ago, was my
advisor. I was unsuccessful in attracting start-up funding.

Partial
list of toy concepts include:

"Witch
Sticks" (or &;Rainbow Rods&;)- miniature water dowsing rods that
really work. Truly. They are Kid tested (don't work as well for adults
because most have lost their psychic abilities). This toy has
potential to be a big seller due to magic being of popular interest to
kids since the Harry Potter series appeared.

"Rainbow
Alphabet Book"- felt letters in a felt rainbow book for toddlers to
learn alphabet. It happens to work perfectly that seven felt pages in
the seven colors of the rainbow folded over into book format creates
26 interior pages, one for each letter of the alphabet.

Letter
Dolls-A, B, C, characters for kids to get acquainted with the alphabet
by making it "friendly" like the Rainbow Alphabet Book does the same
above.

"Whaleship"
solar balloons shaped like blue whales and other endangered whales.
Trapped hot air makes the balloons rise in the air. (Same principle
could make a Solar Blimp work as well!)

New
concept in higher education and trade schools. Best teachers in every
popular subject create video instruction tapes for home students
anywhere to rent, purchase, or download. SVC provides an inexpensive
way to complete college degrees or earn trade school certification by
learning from the best teachers in the various fields of expertise.

*Custom Cardboard
Co.-insulation sales. Nearly every construction project needs
insulation. Potential sales could be very high if our product is
cheaper, easier to work with while having all the R values and
longevity of fiberglass insulation.

*
"Commandboard":
new computer keyboard/filing system that greatly reduces steps
necessary to locate files on your computer. Two computer systems
experts thought this idea has potential and every pc user would be a
potential customer. Huge potential moneymaker.

*
"Fleximotion": signs in motion technology using LCD's for car
back-window signs, signs on caps and T-shirts, all in motion scrolling
whatever you want others to read using programmable scrolling message
technology combined with LCDs. Practical use is for tourists who could
use programmed language signs on their hats or shirts for
communicating in foreign countries. Also for speech impaired and other
disabled people.